Portugal’s online gambling sector appears to be leveling off following several years of strong growth.
Portugal’s online gambling market experienced its first quarter-on-quarter decline in nearly three years during Q1 2025, signaling a possible slowdown after a long period of steady growth.
According to figures released by the Gaming Regulation and Inspection Service, the sector generated €284.7 million ($335.4 million) in gross revenue for the quarter. While this reflects a 9% increase compared to the same period last year, the growth was largely fueled by higher sports betting margins, which reached 23% during the quarter.
Run of growth comes to an end
Despite year-on-year growth, Portugal’s online gambling market saw a notable decline in Q1 2025 compared to the previous quarter, falling from the record €323 million recorded in Q4 2024. The 12% drop marks the first quarter-on-quarter decrease since Q2 2022 and the steepest decline in percentage terms since 2018.
Online casino revenue accounted for 60% of the total, generating €169.7 million. While this represented a 6% increase from the same period last year, it was down 8% compared to the previous quarter.
Online sports betting also showed year-on-year growth, with revenue reaching €114.9 million—a 14% rise. However, this was a 17% drop from Q4 2024, marking the sharpest quarter-on-quarter decline in the sports betting segment since 2022.
Market maturation
Ricardo Domingues, board chairman of the Portuguese Online Betting and Gambling Association (APAJO), described the recent market slowdown as a “natural” sign of a maturing industry. “We view these fluctuations calmly,” he said, emphasizing that the main priority remains addressing demand while tackling the persistent threat of unlicensed operators.
Although gross revenue dipped in Q1 2025, the number of active online gambling accounts in Portugal rose by 7% compared to the previous quarter, reaching 4.8 million.
Meanwhile, the Portuguese government collected €82.7 million in online gambling taxes for the quarter. According to APAJO, this amount aligns with fiscal expectations tied to the country’s Environmental Fund.
A decade in operation
Portugal’s regulated online gambling market has been active for over ten years, following the legalization of online gambling in April 2015.
Since then, the sector has expanded to include 30 licensed operators—13 offering online sports betting and 17 providing online casino services.
In 2024, the market recorded gross revenue of €1.11 billion, marking a significant rise from the €845 million generated in 2023.
